NOURIEL ROUBINI BLOG tracks the media appearances of Dr Nouriel Roubini his interviews articles debates books news speeches conferences blogs etc..Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

Saturday, May 18, 2013

Roubini : The Too Big to Fail has only become more true since 2008

Roubini on why the Federal Reserve keeps issuing quantitative easing:
"We're in the process of very painful deleveraging in advanced
economies. We started the crisis with too much private debt and now we
have too much public debt and deficits. Research suggests that
usually a deleveraging cycle can last up to a decade. The crisis in
2007, now we are in 2012 and therefore the process of deleveraging in
the United States, in the euro zone, in the U.K. and Japan is barely
mid-stream. In the U.S. we postponed the deleveraging of the public
sector and the housing sector, and therefore, economic growth will is
anemic. Therefore, the only thing we can do, given we don't have the
fiscal tool, is use the monetary policy."Bremmer on what is needed in Washington to get something done:
"You don't get there until after the elections and you shouldn't,
because whether or not Obama is able to take this, the actual outcome,
the way that you have Senate and House laid out, that actually
matters in terms of the ultimate deal you get. So if you're a Democrat
or Republican right now, you have zero incentive to tip your hand on
what you really want to do until you know where we're going to go. As
soon as we get past those election, a deal is going to happen."Roubini on whether Bernanke is an asset or liability for President Obama:
"At the margin, he's an asset in a sense of what the Fed has been
doing is reduce the tail risk of another double dip recession. QE,
QE2, Operation Twist and now QE 3. It is not going to have a huge
effect on the economy, but it already has an effect on stock prices.
There has been a rally of 15% since December in part because of lower
tail risk in the euro zone and in part because of QE3. The margin is
beneficial, but only marginally."Bremmer on November's election:
"If Obama wins, and it is looking very much like he is going to, it's
not primarily because Romney is a horrible candidate. It is primarily
because of three people. It's John Roberts and the fact that he got
healthcare approved. It's Angela Merkel and the fact of the chancellor
has been able to keep the euro zone afloat...And number 3, Ben
Bernanke. You would not expect these three people President Obama
would win with."Roubini on the banking system in the U.S.:
"It is worse than before, because there has been massive
consolidation of the banking system in the United States, JPMorgan
took over Bear Stearns. Bank of America took over Countrywide and
Merrill Lynch. We had banks that were too big to fail before the
crisis and now they are even bigger to fail than before. There has
been mass consolidation. The problem has not gone away. The only
solution is to break up too big to fail banks. There is no other
alternative. We have to go back to Glass-Steagall."Roubini on what would be the catalyst to break up the banks:
"I would have thought after the worst global financial crisis the
decision would have been made. Maybe we need another big financial
crisis. For the time being, the politics will not lead us there."Bremmer on where the leadership will come from to get to a better financial system:
"It will not come soon. What you're really talking about when you
talk about too big to fail is the United States. We are too big to
fail that has only become more true since 2008. It is the reason why
people continue to put more money in our equities and our treasuries."Roubini on the economic outlook of Germany:
"There was a divergence between economic growth of the core and the
peripheral of the euro zone. Germany used to do better, but the latest
data suggests a slowdown in German economic growth. It is still
positive, but there are two shocks. There are two main markets for
exports, China and Asia, are slowing down. Secondly, the recession of
the periphery of the euro zone is taking a toll because after all,
most of the exports of Germany go to the rest of the euro zone. There
is a significant slowdown of growth, even in Germany."

Nouriel Roubini : I am putting most of my money in cash , one of the clienbts of my research firm a sophisticated high network individual h...

Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Roubini Quote : "The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown. "

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.

NOURIEL ROUBINI BLOG

This is a Fan Based Blog ,we are not authorized , endorsed, licensed, approved, recommended, published, maintained, edited or managed by Nouriel Roubini ‏, or any of his affiliates, agents or representatives (all such persons are referred to asNouriel Roubini ‏ in this disclaimer). Nouriel Roubini ‏ accepts no responsibility or liability whatsoever for this blog or its content, including its advertising and links to other websites. No endorsement or approval byNouriel Roubini ‏ of any individuals , goods or services is implied . Text Video and other content available on or via this blog might misquote mischaracterize , use out of context , edit or otherwise misrepresent Nouriel Roubini ‏ statements and views . Use at your own risk.

This blog is not intended to give you financial advice. Before investing, do your own research and consult your financial adviser.